Dec 23, 2022
By: Bhakti MakwanaRadiant Cash Management Services, a Chennai-based cash logistics player, will open its initial public offering (IPO) on December 23 and close on December 27. The price band of the IPO is set at ₹94-99 per share.
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The company plans to raise ₹388 crore through a fresh issue worth ₹60 crore, and an offer for sale by promoters and shareholders worth ₹328 crore.
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Incorporated in 2005, Radiant Cash Management Services is a cash logistics player that caters to banks, financial institutions, and organised retail and e-commerce companies in India.
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The company operates across five verticals – cash pick-up and delivery, network currency management (also known as cash burial in industry parlance), cash processing, cash vans/cash in transit and other value added services.
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The company’s business operations are significantly dependent on cash remaining the predominant mode of payment in India. The increased usage of credit cards, debit cards, POS terminals, stored-value cards, UPI and mobile payments could result in a significant reduction in the use of cash as a payment method, says the company.
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The company has lost cash in transit in the past three years because of such reasons – ₹1.88 crore in FY22, ₹2.69 crore in FY21 and ₹2.51 crore in FY20. However, it has covered the lost money though insurance coverage.
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Last December, another cash management firm CMS Info Systems had hit the market and made its stock market debut with tepid listing gains. So far in 2022, CMS Info Systems’ stock has gained nearly 27 percent.
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The company’s shares are scheduled to be allotted on December 30 and listed on January 4 on the BSE and NSE.
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